Datum Reports Record First Quarter Results

IRVINE, Calif., April 26 /PRNewswire/ -- Datum Inc. (Nasdaq: DATM), a
leading designer and global supplier of synchronization, timing and frequency
solutions, today announced results for the first quarter ended March 31, 2001.
Net revenue for the first quarter increased to a record of $32.3 million from
$28.9 million in the prior-year period. Net income was also the highest ever
for a first quarter period at $1.8 million or $0.28 per diluted share,
compared to net income of $328,000, or $0.05 per diluted share, in the first
quarter of 2000.
"We delivered a very solid quarter, given the current market dynamics.
Even though our revenues were slightly below the guidance range, we benefited
from good expense control and favorable product mix to realize the
$0.28 earnings per share," said Erik van der Kaay, Chairman and
Chief Executive Officer of Datum. "Despite the slowdown in telecommunications
carriers' capital spending, our results demonstrate the continuing critical
need for synchronization in telecommunications networks. The quarter was also
marked by several important achievements. First, in support of our objective
to strengthen our global distribution, our partnership with Wandel Global
Services, as distribution partner for Latin America was an important
milestone. Their familiarity with the telecommunications industry and
synchronization products, coupled with extensive knowledge of the broad
customer base in Latin America should allow us to increase penetration into
that dynamic region.
"We have also continued to make appropriate investments in our future and
have received important validation for our next generation products. Our
recently announced X72 rubidium oscillator patent awards will help solidify
our technology edge, both improving our competitive position in wireless
applications and opening new markets for applications where low-cost and
high-performance characteristics are desirable to the end user. The
successful demonstration of our TimePieces technology at Nortel strongly
validates the potential for that new market opportunity. Nortel is expected
to be our first major production customer starting later this year,
integrating TimePieces into some of their existing and new central office
multi-service platforms. And finally, we announced our first major commercial
TrustedTime relationship, with AuthentiDate, a trusted content authority. The
inclusion of Datum's auditable time stamp token in AuthentiDate's solution,
will offer the highest level of authenticity to the content verification of
any digitized document or electronic transaction.
"We believe that the products resulting from these investments, together
with our commitment to improving financial performance, will position Datum
for superior long term growth in sales and earnings," Mr. van der Kaay
concluded.
Datum will host a conference call to discuss first quarter results and
their outlook for the balance of this fiscal year today at 2:00 p.m. Pacific
Time/5:00 p.m. Eastern Time. The call can be accessed via the Internet at
www.datum.com.
About Datum
Datum designs, manufactures and markets a wide variety of high-performance
time and frequency products used to synchronize the flow of information in
telecommunications networks. The Company is also a leading supplier of
precise timing products for computing networks, satellite systems, electronic
commerce, and test and measurement applications. Additional information about
Datum is available at www.datum.com.
This press release contains forward-looking statements. The
forward-looking statements, which reflect management's best judgment based on
factors currently known, involve a number of risks and uncertainties,
including the following: customer concentration, competition, availability of
supplies and components, fluctuations in demand for wireless and wireline
communication services and products, and acceptance of the Company's products
and technology. These factors and other risks inherent in the Company's
business are described from time to time in the Company's SEC filings,
including its Annual Report on Form 10-K for the year ended December 31, 2000.
Actual results may vary materially. The Company undertakes no obligation to
revise the forward-looking statements contained herein to reflect events or
circumstances after the date hereof or to reflect the occurrence of
unanticipated events.
DATUM INC.
FINANCIAL HIGHLIGHTS
(In thousands except per share data)
(Unaudited)
Three Months Ended
March 31,
2001 2000
Net sales $32,252 $28,944
Costs and expenses
Cost of goods sold 17,461 16,722
Selling 4,058 4,143
Product development 3,791 3,748
General and administrative 3,987 3,398
Operating income 2,955 933
Interest expense 119 441
Interest income (36) (74)
Income before income taxes 2,872 566
Income tax provision 1,119 238
Net income $1,753 $328
Net income per share:
Basic $0.29 $0.06
Diluted $0.28 $0.05
EBITDA $4,403 $2,445
EBITDA per share - Basic $0.72 $0.42
EBITDA per share - Diluted $0.69 $0.39
Shares used in per share calculation:
Basic 6,084 5,874
Diluted 6,364 6,192
DATUM INC.
CONSOLIDATED BALANCE SHEET
(In thousands)
(Unaudited)
March 31, Dec. 31,
A S S E T S 2001 2000
Current assets
Cash and cash equivalents $1,590 $1,017
Accounts receivable 30,948 34,988
Inventories 28,110 26,400
Prepaid expense 683 375
Deferred income taxes 4,613 4,613
Income tax refund receivable 160 161
Total current assets 66,104 67,554
Land, buildings and equipment, net 15,347 14,732
Excess purchase price over net
assets acquired, net 12,064 12,595
Other assets 355 395
$93,870 $95,276
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable $9,346 $8,777
Accrued expenses 7,170 7,728
Income taxes payable 742 1,705
Advances on line of credit 82 2,020
Current portion of long-term debt 3,000 3,000
Total current liabilities 20,340 23,230
Long-term debt 1,000 1,750
Postretirement benefits 1,262 1,188
Other long-term liabilities 512 584
Deferred income taxes 985 985
Stockholders' equity
Common stock 1,526 1,517
Additional paid-in capital 52,021 51,441
Retained earnings 17,269 15,516
Unamortized stock compensation (112) (127)
Accumulated other comprehensive income (933) (808)
Total stockholders' equity 69,771 67,539
$93,870 $95,276
MAKE YOUR OPINION COUNT - Click Here
http://tbutton.prnewswire.com/prn/11690X18331487

SOURCE Datum Inc.

IRVINE, Calif., April 26 /PRNewswire/ -- Datum Inc. (Nasdaq: DATM), a
leading designer and global supplier of synchronization, timing and frequency
solutions, today announced results for the first quarter ended March 31, 2001.
Net revenue for the first quarter increased to a record of $32.3 million from
$28.9 million in the prior-year period. Net income was also the highest ever
for a first quarter period at $1.8 million or $0.28 per diluted share,
compared to net income of $328,000, or $0.05 per diluted share, in the first
quarter of 2000.
"We delivered a very solid quarter, given the current market dynamics.
Even though our revenues were slightly below the guidance range, we benefited
from good expense control and favorable product mix to realize the
$0.28 earnings per share," said Erik van der Kaay, Chairman and
Chief Executive Officer of Datum. "Despite the slowdown in telecommunications
carriers' capital spending, our results demonstrate the continuing critical
need for synchronization in telecommunications networks. The quarter was also
marked by several important achievements. First, in support of our objective
to strengthen our global distribution, our partnership with Wandel Global
Services, as distribution partner for Latin America was an important
milestone. Their familiarity with the telecommunications industry and
synchronization products, coupled with extensive knowledge of the broad
customer base in Latin America should allow us to increase penetration into
that dynamic region.
"We have also continued to make appropriate investments in our future and
have received important validation for our next generation products. Our
recently announced X72 rubidium oscillator patent awards will help solidify
our technology edge, both improving our competitive position in wireless
applications and opening new markets for applications where low-cost and
high-performance characteristics are desirable to the end user. The
successful demonstration of our TimePieces technology at Nortel strongly
validates the potential for that new market opportunity. Nortel is expected
to be our first major production customer starting later this year,
integrating TimePieces into some of their existing and new central office
multi-service platforms. And finally, we announced our first major commercial
TrustedTime relationship, with AuthentiDate, a trusted content authority. The
inclusion of Datum's auditable time stamp token in AuthentiDate's solution,
will offer the highest level of authenticity to the content verification of
any digitized document or electronic transaction.
"We believe that the products resulting from these investments, together
with our commitment to improving financial performance, will position Datum
for superior long term growth in sales and earnings," Mr. van der Kaay
concluded.
Datum will host a conference call to discuss first quarter results and
their outlook for the balance of this fiscal year today at 2:00 p.m. Pacific
Time/5:00 p.m. Eastern Time. The call can be accessed via the Internet at
www.datum.com.
About Datum
Datum designs, manufactures and markets a wide variety of high-performance
time and frequency products used to synchronize the flow of information in
telecommunications networks. The Company is also a leading supplier of
precise timing products for computing networks, satellite systems, electronic
commerce, and test and measurement applications. Additional information about
Datum is available at www.datum.com.
This press release contains forward-looking statements. The
forward-looking statements, which reflect management's best judgment based on
factors currently known, involve a number of risks and uncertainties,
including the following: customer concentration, competition, availability of
supplies and components, fluctuations in demand for wireless and wireline
communication services and products, and acceptance of the Company's products
and technology. These factors and other risks inherent in the Company's
business are described from time to time in the Company's SEC filings,
including its Annual Report on Form 10-K for the year ended December 31, 2000.
Actual results may vary materially. The Company undertakes no obligation to
revise the forward-looking statements contained herein to reflect events or
circumstances after the date hereof or to reflect the occurrence of
unanticipated events.
DATUM INC.
FINANCIAL HIGHLIGHTS
(In thousands except per share data)
(Unaudited)
Three Months Ended
March 31,
2001 2000
Net sales $32,252 $28,944
Costs and expenses
Cost of goods sold 17,461 16,722
Selling 4,058 4,143
Product development 3,791 3,748
General and administrative 3,987 3,398
Operating income 2,955 933
Interest expense 119 441
Interest income (36) (74)
Income before income taxes 2,872 566
Income tax provision 1,119 238
Net income $1,753 $328
Net income per share:
Basic $0.29 $0.06
Diluted $0.28 $0.05
EBITDA $4,403 $2,445
EBITDA per share - Basic $0.72 $0.42
EBITDA per share - Diluted $0.69 $0.39
Shares used in per share calculation:
Basic 6,084 5,874
Diluted 6,364 6,192
DATUM INC.
CONSOLIDATED BALANCE SHEET
(In thousands)
(Unaudited)
March 31, Dec. 31,
A S S E T S 2001 2000
Current assets
Cash and cash equivalents $1,590 $1,017
Accounts receivable 30,948 34,988
Inventories 28,110 26,400
Prepaid expense 683 375
Deferred income taxes 4,613 4,613
Income tax refund receivable 160 161
Total current assets 66,104 67,554
Land, buildings and equipment, net 15,347 14,732
Excess purchase price over net
assets acquired, net 12,064 12,595
Other assets 355 395
$93,870 $95,276
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable $9,346 $8,777
Accrued expenses 7,170 7,728
Income taxes payable 742 1,705
Advances on line of credit 82 2,020
Current portion of long-term debt 3,000 3,000
Total current liabilities 20,340 23,230
Long-term debt 1,000 1,750
Postretirement benefits 1,262 1,188
Other long-term liabilities 512 584
Deferred income taxes 985 985
Stockholders' equity
Common stock 1,526 1,517
Additional paid-in capital 52,021 51,441
Retained earnings 17,269 15,516
Unamortized stock compensation (112) (127)
Accumulated other comprehensive income (933) (808)
Total stockholders' equity 69,771 67,539
$93,870 $95,276
MAKE YOUR OPINION COUNT - Click Here
http://tbutton.prnewswire.com/prn/11690X18331487
SOURCE Datum Inc.